Arabian Post Staff -Dubai
Abu Dhabi Global Market authorities have levied a combined fine of $12 million against Hayvn Group, its associated entities, and former Chief Executive Officer Christopher Flinos for conducting unauthorised virtual asset activities through an unregulated entity within the financial free zone.
The Financial Services Regulatory Authority imposed penalties amounting to $8.85 million, while the Registration Authority enforced additional fines totalling $3.6 million. Furthermore, Flinos has been indefinitely barred from engaging in any business activities within ADGM.
The regulatory bodies determined that Hayvn and its affiliates operated virtual asset services without the necessary authorisation, thereby breaching ADGM’s stringent financial regulations. These actions were deemed particularly serious due to the potential risks posed to investors and the integrity of the financial system.
Hayvn, established as a digital asset-focused financial institution, had previously been granted a Financial Services Permission by ADGM in December 2021, authorising it to arrange deals in investments and provide custody for accepted virtual assets. However, the company voluntarily ceased operations in ADGM until further notice.
The investigation into Hayvn’s activities revealed that the firm, under Flinos’s leadership, engaged in unauthorised virtual asset operations through an unregulated entity based in ADGM. This contravention of regulatory requirements prompted the substantial financial penalties and the prohibition order against Flinos.
